As per the sub section 81 of section 2 of CGST Act 2017, the term ” Other Territory ” is defined as ” Other territory ” includes territories other than those comprising in a State and those referred to in sub-clauses (a) to (e) of clause (114);

the terms ‘ other territories ” includes:

Territories other than those comprising in a state.

Territories referred to in sub clause (a) to ( e) of section 2(114)

Example : The state of Gujarat, the territory other than Gujarat is covered by the definition of “other territory”.

Why the need for defining the term “other territory” in the CGST Act 2017 has arisen?

The answer is because the Central Goods and Service tax is leviable only on the intra-state transactions.

Section 2(114) of the Act provides the meaning of the term “Union Territory” as follows:

As per Section 2(114) “Union territory” means the territory of—

The Andaman and Nicobar Islands;

Lakshadweep;

Dadra and Nagar Haveli;

Daman and Diu;

Chandigarh; and

other territory.

as per the definition, in the case of state of Gujarat , the territories other than the territory of Gujarat, and the territories of the Union territories mentioned in (a) to ( e) above are covered by the term “ other territories “.